Oh BOY!!

[what_a_disasta]

http://www.fuh2.com/

[SD Realtor]

I think there is a substantial amount of relief that will be made by the lenders. I still do not think it will have a significant impact…. remember when you were a kid and you would go to the beach and build a sand wall to withstand the waves?

From the lenders standpoint, we all I think, correctly assume that these guys know what is going on. Thus, they are hoping to smooth the incoming waves out and make it like a slow tide coming in over time. Additionally they can pick and choose which homeowners to throw lifelines to. It makes sense to me that they would save those homeowners who pose LESS of a risk to default. Let the others get carried away by the tide.

Just my guess…

SD Realtor

[SD Realtor]

I think there is a substantial amount of relief that will be made by the lenders. I still do not think it will have a significant impact…. remember when you were a kid and you would go to the beach and build a sand wall to withstand the waves?

From the lenders standpoint, we all I think, correctly assume that these guys know what is going on. Thus, they are hoping to smooth the incoming waves out and make it like a slow tide coming in over time. Additionally they can pick and choose which homeowners to throw lifelines to. It makes sense to me that they would save those homeowners who pose LESS of a risk to default. Let the others get carried away by the tide.

Just my guess…

SD Realtor

[kewp]

I think once people realize what a sh!tstorm this is they will just be tossing the keys to the bank and walking. Bad credit is better than indentured servitude, IMHO.

I guess the question will be, who will be left with enough cash and good credit to pick up the pieces?

[kewp]

I think once people realize what a sh!tstorm this is they will just be tossing the keys to the bank and walking. Bad credit is better than indentured servitude, IMHO.

I guess the question will be, who will be left with enough cash and good credit to pick up the pieces?

[noone]

There’s a
similar article in today’s UT. Though their number of subprime loans entering foreclosure in the first quarter is 3.23% not 2.43%. They both claim the data comes from the Mortgage Bankers Association, so I wonder why the difference. Maybe UT is including NODs while WP is not?

Anyway, the UT article includes this reference to those who are working things out with their lenders:

The national numbers benefited from a decrease in the defaults among loans insured by the Federal Housing Administration. The agency and the lenders it works with have been restructuring two out of every three loans in foreclosure, said Douglas Duncan, chief economist with the Mortgage Bankers Association. And it appears similar efforts to renegotiate mortgages to keep borrowers in their homes may also be holding down defaults overall.

“We are seeing more loan modifications and foreclosures and once loans go through either of those processes the loans go out of those databases,” said Mark Zandi, chief economist at Moody’s Economy.com. But he cautioned “they might come back. The recidivism on those loans is very high.”

But I think Drunkle’s right. What can they be doing besides moving into 50 year mortgages with interest only for an extended period of time?

Besides, moon mining sounds like fun! It’s also a great way to lose weight, you instantly drop from 300 lbs down to 50! It’ll be harder to get to the Del Mar Fair, but once you do, you can eat all the deep fried twinkies you want!

[noone]

There’s a
similar article in today’s UT. Though their number of subprime loans entering foreclosure in the first quarter is 3.23% not 2.43%. They both claim the data comes from the Mortgage Bankers Association, so I wonder why the difference. Maybe UT is including NODs while WP is not?

Anyway, the UT article includes this reference to those who are working things out with their lenders:

The national numbers benefited from a decrease in the defaults among loans insured by the Federal Housing Administration. The agency and the lenders it works with have been restructuring two out of every three loans in foreclosure, said Douglas Duncan, chief economist with the Mortgage Bankers Association. And it appears similar efforts to renegotiate mortgages to keep borrowers in their homes may also be holding down defaults overall.

“We are seeing more loan modifications and foreclosures and once loans go through either of those processes the loans go out of those databases,” said Mark Zandi, chief economist at Moody’s Economy.com. But he cautioned “they might come back. The recidivism on those loans is very high.”

But I think Drunkle’s right. What can they be doing besides moving into 50 year mortgages with interest only for an extended period of time?

Besides, moon mining sounds like fun! It’s also a great way to lose weight, you instantly drop from 300 lbs down to 50! It’ll be harder to get to the Del Mar Fair, but once you do, you can eat all the deep fried twinkies you want!

[drunkle]

oh yeah, is there any good bbq at the fair? bbq competitions or anything?

[drunkle]

oh yeah, is there any good bbq at the fair? bbq competitions or anything?

[NotCranky]

Temecula guy,
I looked for something no one else wanted. It turned out to be a nice craftsman cottage, 67k in gentrifying neighborhood.The previous owner paid 109k one year earlier. My broker got me a 5.85% loan because BofA had not been nice to people of color previously so they had to give discounted rates to anyone who bought in that zip code. I told the appraiser that the house was worth 85k and he wrote it up that way. I kept quiet and after the close of escrow demanded that PMI be stopped. They refunded me all the way back to the first penny and lowered my payment.I was very ignorant actually regarding markets at the time. I decided I would sell when my profits equaled one year of my wages! 300k later the market peaked.All those lost rents, and rents did almost double after I sold. LOL

[NotCranky]

Temecula guy,
I looked for something no one else wanted. It turned out to be a nice craftsman cottage, 67k in gentrifying neighborhood.The previous owner paid 109k one year earlier. My broker got me a 5.85% loan because BofA had not been nice to people of color previously so they had to give discounted rates to anyone who bought in that zip code. I told the appraiser that the house was worth 85k and he wrote it up that way. I kept quiet and after the close of escrow demanded that PMI be stopped. They refunded me all the way back to the first penny and lowered my payment.I was very ignorant actually regarding markets at the time. I decided I would sell when my profits equaled one year of my wages! 300k later the market peaked.All those lost rents, and rents did almost double after I sold. LOL

[DaCounselor]

“I think there is a substantial amount of relief that will be made by the lenders. I still do not think it will have a significant impact…. remember when you were a kid and you would go to the beach and build a sand wall to withstand the waves?

From the lenders standpoint, we all I think, correctly assume that these guys know what is going on. Thus, they are hoping to smooth the incoming waves out and make it like a slow tide coming in over time. Additionally they can pick and choose which homeowners to throw lifelines to. It makes sense to me that they would save those homeowners who pose LESS of a risk to default. Let the others get carried away by the tide.

Just my guess…”
_______________________________

That’s a good guess. I think the term “loan modification” is going to be as big a buzzword over the next several years as the words “foreclosure” and “short sale.” I also think it is possible that there may be enough modifications to have a significant counteractive effect on downward pressure on pricing. I don’t think it will stop the downward trend, but it could help minimize the damage. Rich’s friend Ramsay has weighed in on this subject several times – and I think we are coming due for another insight from him if Rich has anything to pass along on this subject.

[DaCounselor]

“I think there is a substantial amount of relief that will be made by the lenders. I still do not think it will have a significant impact…. remember when you were a kid and you would go to the beach and build a sand wall to withstand the waves?

From the lenders standpoint, we all I think, correctly assume that these guys know what is going on. Thus, they are hoping to smooth the incoming waves out and make it like a slow tide coming in over time. Additionally they can pick and choose which homeowners to throw lifelines to. It makes sense to me that they would save those homeowners who pose LESS of a risk to default. Let the others get carried away by the tide.

Just my guess…”
_______________________________

That’s a good guess. I think the term “loan modification” is going to be as big a buzzword over the next several years as the words “foreclosure” and “short sale.” I also think it is possible that there may be enough modifications to have a significant counteractive effect on downward pressure on pricing. I don’t think it will stop the downward trend, but it could help minimize the damage. Rich’s friend Ramsay has weighed in on this subject several times – and I think we are coming due for another insight from him if Rich has anything to pass along on this subject.

[capeman]

Kind of along the lines of what DaCounselor and Drunkle are saying I agree that there will be some serious loan modification going on. What I fear is that this could bring about the new dominance of a 50 year mortgage. If that type of instrument becomes commonplace then the affordability of homes will not likely revert back to what it normally is during 30 year fixed dominance with fundamentally based rate. It could in the end become the most common instrument causing less affordability and more people becoming commonly enslaved to a home. Who would have thought 10-20 years ago that there would be a 7 or 8 year auto loan term and the ability to roll old loans into new ones? That kind of stuff freaks me out but it is extremely common and doesn’t help to bring auto prices down.

cheers,

chris

[capeman]

Kind of along the lines of what DaCounselor and Drunkle are saying I agree that there will be some serious loan modification going on. What I fear is that this could bring about the new dominance of a 50 year mortgage. If that type of instrument becomes commonplace then the affordability of homes will not likely revert back to what it normally is during 30 year fixed dominance with fundamentally based rate. It could in the end become the most common instrument causing less affordability and more people becoming commonly enslaved to a home. Who would have thought 10-20 years ago that there would be a 7 or 8 year auto loan term and the ability to roll old loans into new ones? That kind of stuff freaks me out but it is extremely common and doesn’t help to bring auto prices down.

cheers,

chris

[Author]

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